Can other Ledgers franchisees or affiliates sell to clients within my exclusive territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ement structure to be able to successfully open and operate another territory.
We do not grant you options, rights of first refusal, or similar rights to acquire additional franchises.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a company owned or franchised Ledgers location.
You and other franchisees may not solicit (but may accept) orders from consumers outside of your Territory, including through the use of other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, but you may engage in internet and social media marketing pursuant to our guidelines which such marketing may extend outside your Territory.
Continuation of your territorial rights depends on achieving a certain sales growth.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Instead, Ledgers offers a protected territory, which means the franchisor promises not to establish a company-owned or franchised Ledgers location within the franchisee's defined geographical area. However, franchisees may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Ledgers for clients within their territory.
Specifically, another Ledgers franchisee or an affiliate may sell to clients within a franchisee's territory using Ledgers's marks through various channels such as the Internet, catalog sales, or telemarketing. This means that while Ledgers will not set up a physical location within your protected territory, other parts of the Ledgers network can still solicit and conduct business with clients located there.
Ledgers is not obligated to compensate franchisees for sales solicited or accepted from clients inside their territory by other franchisees or affiliates. However, Ledgers states that they will normally direct all inquiries for services from within a franchisee's territory to that franchisee's business. This suggests that while other franchisees or affiliates can make sales in your territory, Ledgers intends to prioritize directing local inquiries to the local franchisee.
This arrangement means that while you have some geographical protection from direct Ledgers competition, you still need to actively compete for clients within your territory against other parts of the Ledgers system. Prospective franchisees should consider the implications of this non-exclusive arrangement and how it might affect their business strategy and revenue projections.